How Will Global Food Supply Chains be Impacted by the Russian Invasion of Ukraine?

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Welcome to your weekly food & beverage report, where we cover everything you’ll need to know for the week ahead. This week, we look into how food and beverage supply chains could be affected by the Russian/Ukrainian conflict, Ryan and Kristyn dive deeper into news on the Russian invasion, and leadership positions are shuffled around in some of the biggest companies in food and bev. 

The Russian invasion of Ukraine sent shockwaves around the world; how could food supply chains be affected?

The global energy market was thrown into disarray; European security has been destabilized; some are saying food markets will be next to be hit hard by Russia’s invasion of Ukraine. Combined, Russia and Ukraine account for about 29% of the global wheat export market; the invasion during a time when wheat and corn prices were already on the rise could seriously contribute to food inflation down the line. When considering crop nutrient and natural gas exports, Russia provides 25% of the European supply of key components of nitrogen-based fertilizers. Supply is likely to be strained. 

• Politics in the way of practicality?... Ukraine is considered the ‘breadbasket of Europe’, producing wheat, barley, and rye for much of Europe and many nations across the Middle East and Africa. Ukraine replaced the US as China’s top corn supplier in 2022, creating complications amongst allegiances. 
• Supply Chain Snafu… From closure of ports, airways, and land routs throughout Europe, supply chains are in critical condition and may have lasting effects. Some executives caution that it’s too early to know how long-lasting these hits to supply chains will be, however sanctions are likely to reverberate around global economies (not just Russia’s).

Powerhouses across the food and beverage industry are rearranging some of their top leadership positions

Leadership positions amongst the biggest food businesses are experiencing some shuffling as of late, with ADM, Cargill, and Conagra all seeing (or seeking) changes in leadership roles and appointees. 

• Chiefs of Cargill… Four new executives have been added to Cargill’s team to help the company navigate changes in the food system. Among the positions seeing new faces are chief information and digital officer (Jennifer Hartsock), leader of Cargill’s Agriculture Supply Chains business (Roger Watchorn), chair of Asia Pacific (Ross Hamou-Jennings), and chief human resources officer (Stephanie Lundquist). 
• You’re a star(bucks exec)!...  Conagra Brands has brought George Dowdie to its board of directors, rounding out the appointees on the board to 13. Dowdie is the executive vice president of global supply chain at Starbucks Corp (SBUX). 
• Phasing out… Ray G. Young has changed positions with ADM, moving from CFO to vice chairman. Once ADM  (ADM) finds the right candidate for its next CFO (whether internal or external), Young will officially transition from his role. 

While you’re here, check out the latest episode of our new podcast The Food Biz, streaming across all podcast platforms. If you have any feedback or input, reach out to us at news@barchart.com. We’d love to hear what you think!

Other stories…

• A toast to the turtles… Coors Light will be phasing out its plastic ring packaging in favor of fully recyclable and sustainably sourced cardboard-wrap carriers. Parent company Molson Coors (TAP) is investing $85M to get its entire North American portfolio up and running with environmentally friendly packaging by the end of 2025. 
• Driving restaurant  traffic… Drive-thru traffic has seen significant growth over the course of the pandemic, eating up 42% of restaurant traffic in November 2021, up 26% from February 2020. 
• Grain gains… Riviana Foods (Parent company Ebro Foods, EBRO.E.DX) will acquire the assets of InHarvest, a California manufacturing company specializing in rice, whole grains, and quinoa, for $48.75M. 

That’s all we have for you this week, do you have anything for us? We’d love to hear from you with stories or recommendations for new sections to include! Drop us a line at news@barchart.com with any feedback or input.